The music industry is a giant business that generates billions of dollars annually. As an artist looking to break into the music industry, it is important to understand the terminology and know what you’re dealing with. Contracts and royalties are two of the most crucial aspects of the music business. Without understanding these concepts, artists can easily get fleeced and miss out on their rightful earnings. In this blog post, music professional Benjy Grinberg delves into artist contracts and royalties, outlining the key aspects every artist should know.

Artist Contracts

In the music industry, a contract is a legally binding agreement between an artist and a record label or distribution company. A contract is essential as it stipulates the obligations and benefits that both parties must fulfill for the collaboration to be successful. The contract specifies the duration of the agreement, the scope of services provided, and the compensation to be paid to the artist. However, not all contracts are created equal. Artists must take the time to properly evaluate all aspects of a potential contract before signing on. They should consider the duration of the contract, including any possible renewals, and ensure the compensation is fair to them. Understanding these terms can help artists negotiate better deals that will benefit them in the long run.

Royalties

Royalties are the monetary earnings paid to artists for the use of their songs. These earnings come from the usage of songs on streaming platforms, radio, TV, and other mediums. There are different types of royalties that artists can earn, including performance royalties, mechanical royalties, and publishing royalties. As an artist, it is important to know what each of these royalties means and how they work. Performance royalties are earned when your songs are played in public spaces or on online streaming platforms. Mechanical royalties are earned from the sales of physical copies of your music. Publishing royalties come from using an artist’s songs in TV shows, movies, and commercials. Knowing the types of royalties that apply to your work allows you to understand and track your earnings, ensuring you receive the compensation you deserve.

Contract Termination

Sometimes, a contract may not work out as an artist expects. In these situations, it’s important to understand the terms of the contract termination clauses. These clauses protect the label and the artist; their interpretation is essential to avoid potential legal disputes. It is important to know why a contract can be terminated, including breaches of contract, failure to provide promised services, or an inability to generate revenues from the artist’s work. To protect yourself, consult a legal professional and review the termination clauses in your contract before signing.

Artist Rights

The music industry is ever-evolving, and so are artists’ rights. An artist’s rights are essential to ensure that they are well compensated for their work and that their work is protected from being stolen or exploited. Artists have the right to their music, including the recording and lyrics. Additionally, they have the right to receive proper credit and prevent others from using their music without permission. Understanding these rights and taking steps to protect them is essential in the music industry. Artists need to know what music to register, with what organizations, and how to track their earnings properly.

Final Thoughts

The music industry can be daunting for new artists, but understanding the particulars of artist contracts and royalties is essential. Knowing what to look for in a contract, understanding the different types of royalties, and how to protect your music are key to ensuring you receive the compensation you deserve. Remember, never sign anything without reviewing it; don’t be afraid to ask questions. Reach out to legal professionals and financial advisors to ensure you understand all the legal and financial aspects of the contract. Finally, focus on your art, hone your craft, and continue to create great music. Benjy Grinberg says you can take your music career to new heights with a good contract, an understanding of royalties, and a knowledge of artist rights.